Zara owner Inditex grows market share and profits

Inditex, the Spanish owner of Zara and Massimo Dutti, reported a 32pc increase
in earnings over the last six months that beat analysts’ estimates as the
retailer expanded online and in emerging markets.

The retailer said like-for-like sales at the start of the third quarter through September 17 rose 7pcPhoto: JANE MINGAY

By Telegraph staff and agencies

8:49AM BST 19 Sep 2012

The Spanish retailer, which runs eight brands including youth label Bershka and underwear store Oysho posted net profit of €944m (£759m), compared with €905m forecast in a Reuters poll of banks and brokerages.

"The drivers are certainly there - the rapid rollout of online sales and fast fashion - but even so it's a spectacular performance," said Anne Critchlow, analyst at Societe Generale.

The retailer said like-for-like sales at the start of the third quarter through September 17 rose 7pc.

Inditex has given no guidance so far on its online performance, but internet sales could be boosting growth to the tune of at least 2 percentage points, Societe Generale calculates.

"Online is allowing Inditex to access customers that wouldn't be near one of its concept stores," said Critchlow.